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Topic : 09/15 Money Matters: Surviving the Crisis

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Created on : Friday, September 12, 2008, 01:15:18 pm

Author : DrPhilBoard1

Are you in debt? During these tough economic times with foreclosures on the rise and gas prices through the roof, more and more families are panicking about their financial stability, and some are only one paycheck away from being on the street. Would you and your family know what to do to survive? Just two years ago, Brandy and Greg say they were living the American Dream: a big house, a fast boat, plenty of spending money and four beautiful children. That all changed when their six-figure income was reduced to nothing. On the brink of losing everything, how did this family end up nearly a quarter of a million dollars in debt, and could it happen to you? Money expert Loral Langemeier shares a 90-day plan to help get their finances back on track. Then, Milton and Patricia were awarded the largest home ever given away on Extreme Makeover Home Edition. The headlines now report that the mini mansion is near foreclosure because of the couple's frivolous spending. They come to Dr. Phil to set the record straight and clean up their financial mess. And, Dr. Phil reveals the five biggest money mistakes people make. Could you be making them right now? You don't want to miss these tips! Join the discussion.

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09/15 Money Matters: Surviving the Crisis

While I do not know the specifics of this family, I do know that a huge part of the financial crisis this country is now facing is merely a society of 'living beyond' our means. We also live in a time of "I want it and I want it NOW"!! This must stop... I know my parents did not go and extend themselves financially to a point that they would be 1 paycheck from being broke. It is NOT what you earn that is important... it is what you SAVE that makes the difference. Why do people just feel to have bigger and better. They drown themselves in debt and then look around for the government to bail them out. Why not try living within the means of your salary and being happy with what you have?? Nice, new things (houses, cars, boats, etc.) may give you instant joy but that joy will dim and you will want the next new thing..... I am not saying that is EVERYONE in this situation, but it is the majority. Of course, this is just my opinion....

I think you are very much on target...

While I do not know the specifics of this family, I do know that a huge part of the financial crisis this country is now facing is merely a society of 'living beyond' our means. We also live in a time of "I want it and I want it NOW"!! This must stop... I know my parents did not go and extend themselves financially to a point that they would be 1 paycheck from being broke. It is NOT what you earn that is important... it is what you SAVE that makes the difference. Why do people just feel to have bigger and better. They drown themselves in debt and then look around for the government to bail them out. Why not try living within the means of your salary and being happy with what you have?? Nice, new things (houses, cars, boats, etc.) may give you instant joy but that joy will dim and you will want the next new thing..... I am not saying that is EVERYONE in this situation, but it is the majority. Of course, this is just my opinion....

You are very much on target. Alot of people are in debt due to poor decsion making and frivolous spending. As you put it, people want something and have to have it that minute...whether or not they can actually afford it is another story. I don't feel sorry for people like this when they fail which they inevitably do. I do not buy anything that I wouldn't have the money in the bank to cover when the bills come rolling in. I learned to sacrifice and save money in my earlier years and that is why I can now enjoy (and afford) some luxuries. So excuse me if I just can't feel sorry for the materialistic brats on the show who got themselves in trouble because they needed instant gratification, and are so immature that they can't sacrifice or save. What I'd like to know is whether it is going to cost me some of my hard-earned money to bail losers like this out.

Surviving the crisis

I know what this family is goign through, as I am going through the same problem. A huge debt I can't afford to pay and I am almost loosing my life , due to this debt. The stress one accumulates is hard to discribeMy wish for any one in this setuation is to come out of it , and in the mean time , seek help through prayers. The only reason I am alive is through prayers and the love I have for my family.Watch dr: Phil all the time, their might be something that might help you to persevere through any stress. the show has helped me alot.Be blessed

Worried to Death

I picked the worst time ever to leave my job with nothing in line, but I felt my health failing. I have spent so much money to go to school and it never seems to be enough. The workplace is full of ego maniacs that make coming to work a living hell. Also, people are so insensitive to your financial state. I worried with a child last year whose father committed suicide, because he couldn't see a way out. I am trying to work through this, but I am tired of feeling under valued as an employee and grinning and bearing it all. I know there is an opportunity out there for me.

watching it hapen

We have told our daughter for years to watch her money, now she is married with 2 young boys and heaven help us she married someone who, like her, hasn't learned to live within his means or save. He has had 6 sales jobs in 5 yrs and is currently looking for a new one! He looks at how much he can make, and expects to make it in the first year, and when he doesn't he leaves! They have filed for bankruptcy, and may lose the house they bought a yr ago. While I don't feel particularly sorry for them, I do feel sorry for the boys. I had to pay an outragous daycare bill from last yr so that my grandson could go to pre-school. I paid it because he should not suffer for his parent's shortsightedness. My daughter has a good job with a promising future, but she can't do it alone, and now that her husband can collect uneployment she is aftraid that he will do nothing until it runs out. This generation is so all about themselves they fail to see beyond next week. Eating out used to be a special occasion, but anymore it is the norm. While I realize that not every money crisis is from careless spending, there are many many people who just never paid any attention to where their money was going.

New generation "Y" vs Surviving the Money Crisis

We have told our daughter for years to watch her money, now she is married with 2 young boys and heaven help us she married someone who, like her, hasn't learned to live within his means or save. He has had 6 sales jobs in 5 yrs and is currently looking for a new one! He looks at how much he can make, and expects to make it in the first year, and when he doesn't he leaves! They have filed for bankruptcy, and may lose the house they bought a yr ago. While I don't feel particularly sorry for them, I do feel sorry for the boys. I had to pay an outragous daycare bill from last yr so that my grandson could go to pre-school. I paid it because he should not suffer for his parent's shortsightedness. My daughter has a good job with a promising future, but she can't do it alone, and now that her husband can collect uneployment she is aftraid that he will do nothing until it runs out. This generation is so all about themselves they fail to see beyond next week. Eating out used to be a special occasion, but anymore it is the norm. While I realize that not every money crisis is from careless spending, there are many many people who just never paid any attention to where their money was going.

God bless you for being compassion and generously enough to continue to help pay your grandson's daycare bill. I know it was like a living nightmare as parents to witness it was happened to our own grown up kids. They are called a typical new generation "Y" symptom. Now day, it is a common ground to draw up a legal binding for a separate financial proportion agreement between a marriage couple. Hopefully this would make a new straight clear boundary for each marriage couples.

09/15 Money Matters: Surviving the Crisis

Choices... We all have to make them in our daily lives. Whether they are the right one for that instant moment is OUR decision. We create our own destinies, living standards, and happiness. It all depends on how we make our decisions on WANTS and NEEDS. Do you make a purchase because you want it or need it? And, does that want or need serve as an instant gratification of an underlying obsessive compulsive disorder? I'm in the same boat as the majority of this country is in... struggling to keep a roof over my girls and my head, food in the refrigerator, clothes on their back, heat in the house, gas in the car, plus all the other essentials to everyday living. I'm a single mother and work and it is so hard to provide in this economy. I recently moved to a small apartment after almost being evicted because of the high rent. I am still trying to get out of that financial hole and its been four months. We still don't have TV, sorry Dr. Phil haven't seen you in awhile, but hopefully soon. I chose not to have the TV turned on so that I wouldn't have another frivolous bill to pay and that money saved can be put to better use. This country is in serious financial crisis. Most of all the large banks and credit card companies are actually owned by the middle eastern countries. They control interest rates and mortgages! Our money is being filtered out of this countries hands where it is needed to other countries, making them richer and more powerful. Eventually the USA will not be the most powerful country in the world. It has to do with all the capitalists that control our worlds major industries, the PEOPLES lack of knowledge, and our choices we make! One thing that really ruffles my feathers is that the one thing that everyone needs and that makes this world turn is ...the almighty dollar, money... and our government does not educate us on this vital subject. High schools should have a mandatory financing course that teaches children about how money works... credit cards, interest, investing etc... An excellent book on this subject is RICHARD KIYOSAKI"S RICH DAD, POOR DAD and CASH FLOW QUADRANT. Basically, how to have your money work for you, instead of you working for money. Like the old saying goes, it takes money to make money... I just wish I had some to spare... to make it work for me! I'm sick of surviving, I WANT TO LIVE. May God Bless us all in our needs and knowledge!!! Sincerely, Heidi

Learning to Delay Instant Gratification

I think that this credit care craze started in the 80's and has steadily gotten worse. People have learned to supplement their income with credit cards. They have learned that they do not need to save in order to have things. They have items instantly with little plastic cards. Paying on time. I can tell you that I am guilty of this myself.

It is only of the last 2 years that my husband and I have buckled down and started paying off our debt slowly and surely and delaying gratification (yes, it is hard) to get where we need to be. Luckily we realized in time that we needed to get in control of our spending. And it was something that was silly that made us wake up. We actually ate out alot. On a whim one month I added up what we were spending each month eating out at restaurants. Believe it or not it was 500-600 bucks a month! We about passed out!!! Imagine our surprise. We are not big spenders and we aren't at the mall every weekend. So I would bet we are a lot like most of you all. It just creeps up on you. It isn't like 3 big purchases and you are up to your ears. It just is something that you turn around a couple of months and there it is too big to pay off and then starts to grow and then gets away from you.

It happened to us. I would hate to tell you how much because it is rather embarrassing. But two years ago we buckled down and started our plan. Our big splurge was pizza on Friday night. Take and bake pizza which is pretty inexpensive. When we did go out maybe 1 every month or 2 it was a special treat. Believe it or not... you actually get excited about it. I think it makes it like it is supposed to be. Our TV broke on the main level of our house. Guess what? We did not replace it. We waited until we had the cash to buy a new one. It took almost 9 months. What did we do for Christmas? Actually we did a "gag" Christmas. We had a great time. Something funny and revelant to that year. My Father has cancer and it made it more special because you put more thought into the "present" and we all laughed and recalled that years events. It was special.

Guess what? We paid off our truck 1 year early. I made the last payment on our credit card on Friday. Except for our home we are now debt free! We worked hard. If we can do it any one can do it. We are the same as anyone else.

grandparents raising kids

My husband and I are 67 and 73 respectivly. I have full guardianship of my 11 year old grand daughter whom we have had with us since she was born. We live on our SS and my husbands retirement. I work part time as a School Crossing Guard and am paid very well for this part time job. I CAN'T take a day off though. We'd suffer financially because my paycheck goes for home and car insurance plus some food and gas. I struggled to get us out of debt, when one bill got paid off, I rolled that money into another bill, adding money and got another one, added all that money on and things got paid off quickly. I paid off my little 2004 Honda Civic 13 months early. Then I rolled that money right into a loan and got that paid off 7 months early. Now...just as that got paid off, the electrical box in our home had rain water come into it through the wires and box outside. Guess what, we're back in debt again to pay an electrician to fix the problem. The point is, SAVE YOUR MONEY FOR A RAINY DAY~~!! We could have done that years ago and hind sight is always 20-20. If I had taken 50 bucks off the top of the pay check 35+ years ago each month (municipal workers get paid by weekly) years ago, we'd not be in this position I don't think. You'd be surprised how much you can save if you did this consistantly over the years. I went to a Dave Ramsey financial peace seminar and learned a lot. We're not over our heads in debt, got a mortgage, etc.. and I don't use credit cards..but I am very frugal with our money. When in stores, I always ask me, "Do I really NEED this thing or will it be a frill?) Most times, it isn't bought. I am very conscious of how we use utilities, buy groceries on sale and use coupons. We do have life insurance on each of us and I've started a small retirement a few years ago with my municipal job. I'm enrolled in a SS alternative plan but the town has required us to do that. In all it's a tidy sum but I've got to retire or die to get the money, in the case of my death, my husband gets the money. To all young folks...think ahead. Save and plan for your financial future. We didn't and that is why we're struggling paycheck to paycheck. Our 11 year old is doing good, we make sure she gets what she needs, in and out of school. Her Mom helps when she can too. Start a small savings plan and stick to it. You'd be surprised how large it can get over the years. Stop getting coffee at Starbucks, make your own. Dunkin Donuts gets rich off coffee/and., you could bring that from home too. Brown bag for lunch at work. Don't drive unnecessarily and stay out of stores when you're in a funky mood. Go in with a list and purpose. Take it from me, I've learned the hard way. I'm going to tape this show, I've got a feeling it's going to be good.

money matters, surviving the crisis

God bless you for being compassion and generously enough to continue to help pay your grandson's daycare bill. I know it was like a living nightmare as parents to witness it was happened to our own grown up kids. They are called a typical new generation "Y" symptom. Now day, it is a common ground to draw up a legal binding for a separate financial proportion agreement between a marriage couple. Hopefully this would make a new straight clear boundary for each marriage couples.

Yes, God bless you for helping to pay your grandson's day care bill and I do understand how it is for us Grandparents to watch our kids crash and burn. That's another part of why we went into a hole. We helped our kids dig out of problems when we ourselves needed things. My daughters are usually pretty good but they've hit some difficult bumps in the road. My husband and I not only are raising our 11 year old Grand daughter but we day care our 3 year old grandson. My husband stays home with him while I work my part time job. Day care is so expensive now. I have finally put boundries on my kids and said that they need to pay off what they borrow and now we're at the end of our rope, we can do NO more. I've had to draw the line.